nger on my shoulder as he spoke.
Sometimes the conversation was in German, but often in English.
I said that our fleet was like his Majesty's army. It was of the _Wesen_
of the nation, and the Two-Power standard, while it might be rigid and
so awkward, was a way of maintaining a deep-seated national tradition,
and a Liberal Government must hold to it as firmly as a Conservative.
Both countries were increasing in wealth--ours, like Germany, very
rapidly--and if Germany built we must build. But, I added, there was an
excellent opportunity for co-operation in other things. I instanced
international free trade developments which would smooth other
relations.
The Emperor agreed. He was convinced that free trade was the true policy
for Germany also, but Germany could not go so quickly here as England
had gone.
I referred to Friedrich List's great book as illustrating how military
and geographical considerations had affected matters for Germany in this
connection.
The Emperor then spoke of Chamberlain's policy of Tariff Reform, and
said that it had caused him anxiety.
I replied that with care we might avoid any real bad feeling over trade.
The undeveloped markets of the world were enormous, and we wanted no
more of the surface of the globe than we had got.
The Emperor's reply was that what he sought after was not territory but
trade expansion. He quoted Goethe to the effect that if a nation wanted
anything it must concentrate and act from within the sphere of its
concentration.
We then spoke of the fifty millions sterling per annum of chemical trade
which Germany had got away from us. I said that this was thoroughly
justified as the result of the practical application of high German
science.
"That," said he, "I delight to think, because it is legitimate and to
the credit of my people."
I agreed, and said that similarly we had got the best of the world's
shipbuilding. Each nation had something to learn.
The Emperor then passed to the topic of The Hague Conference, trusting
that disarmament would not be proposed. If so, he could not go in.
I observed that the word "disarmament" was perhaps unfortunately chosen.
"The best testimony," said the Emperor, "to my earnest desire for peace
is that I have had no war, tho I should have had war if I had not
earnestly striven to avoid it."
Throughout the conversation, which was as animated as it was long, the
Emperor was cordial and agreeable. He expressed the
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